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Diametric Technical, a UK-based industrial logo and nameplate specialist, has undergone a management buy-out backed by Royal Bank of Scotland (RBS).

Directors Tad James and Pete Knight led the buy-out to become the two main shareholders of the company. The move came in response to the departure of majority shareholders, Brian Calvert and Howard Tombs, who were seeking to retire. Calvert will remain with Diametric as a part-time consultant for a 12-month handover period.

Established in 1984, Diametric creates labelling solutions and nameplates that are used in a variety of industries, including automotive, communications, computing and retail. It has sites in Durley, Southampton and Newport, Isle of Wight.

James commented: “I am delighted that the transaction has been able to progress so smoothly. Having worked at the company for over 10 years it presents mixed emotions as it’s sad to see my colleagues Brian and Howard depart, but is also an exciting time as Pete and I assume new roles, where we will build on the company’s success and look to take it to the next level.”

RBS was the debt provider to long-standing customer Diametric. Mairead Taylor, relationship manager in the commercial banking division at RBS in Southampton, led the transaction team assisted by Carey Moore, director of structured debt solutions for the Solent and Thames Valley area.

“With specialist knowledge in acquisitions and leverage finance and experience in dealing with MBOs, Carey was able to provide expert help and advice and put together a funding package which met fully with the buy-out team’s requirements,” commented Taylor.

“RBS Group colleagues, Ann Porter, business development manager at RBS invoice finance, and Lisa Roberts, senior relationship manager at Lombard, the asset finance provider, also played intrinsic roles in funding the MBO.

“We have been able to work closely with all the directors, both those exiting and those remaining, to facilitate a smooth MBO.”

Lead adviser to the management team was Richard Hurst, director of Southampton chartered accountants HWB.

Hurst assisted with the negotiations with the vendors and the raising of the finance for the buy-out. He commented: “This has been a very successful business and the strategy is to build on that success and take it to the next level. It is an exciting time for the company and I will continue to work with Tad and Pete to help them realise their goals.”

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